Extended Family Looking for a Place to Call Their Own

Jamie and Deanna are parents to two young children (6 and 10). They are currently renting but are extremely motivated to get into their own home for to provide stability and security for their kids. Jamie was close to qualifying for a mortgage on his own but needs a little time to pay down a car loan and improve his credit. Deanna’s mom and sister are both on ODSP due to Lupus and unable to afford a house of their own they decided to move in together to share costs. Deanna was working up until December (earning $40,000) when she decided to go back to school to upgrade her skills. She is in Early Childcare Education (ECE) and will be completing this new program next December when she will be re-entering the workforce.

They have saved up $25,000 for a down payment and will need 3 years to build up a bigger down payment and improve their credit situation.

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Employment
The family has a combined annual household income of $105,000. Jamie works for The Miller Group as an Operator. He has been with them since 2017 and earns $52,000 annually. Joan and April are both on ODSP and collectively earn $32,000 annually. These payments are guaranteed. They family also has child benefits they collect in the amount of $21,000 annually.

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Credit
Jamie has a credit score of 591. Outside of once car loan, he is carrying little debt. Over the course of the three-year program, he will pay down the car loan and be in a really good position to qualify for the mortgage. Joan has a score of 610 with no debt and April has a score of 580. April needs to establish another credit line to improve her credit and the three of them will work with our Clover approved Mortgage Broker to get mortgage ready for the end of the 3 year term.

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Property
The family have found a great property in the Parry Sound area that has plenty of space for the family to live comfortably. Located in a quiet neighbourhood, this property has 4-bedrooms and 1.5 baths. This property has an open concept main floor, main laundry, finished basement as well many upgrades include roof (2009), windows (2015) and natural gas furnaces (2015). This property is 30 minutes to Huntsville and located right off of HWY 11 for easy commuting to where Jamie works.

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Next Steps
If you can qualify for a $320,000 mortgage (based on a 20% down payment), and would like to earn about $862+ in monthly cashflow to help Jamie, April and Joan Rent to Own, please call or text Rachel at 416-450-1940.

Investment Property Highlights

  • Your investment is $73,900
  • Estimated annual return on investment is 32% (based on a mortgage rate of 3rd % and 30 yr amortization –approximated)
  • Your estimated NET profit $70,581
  • Your NET monthly cash flow is approx. $862+ a month
  • Tenant-buyers have $25,000 for the down payment
  • Tenant-buyers has household income of $105,000

click to downloadspreadsheet

 

About the Property

  • Purchase price is $400,000 (set up for multiple offers – this is a target)
  • Target closing date is 30 days
  • Tenant-buyer agrees to pay $2,575 monthly
  • Monthly carrying costs $1,715 (or less)
  • Tenant-buyer will buy this house in 2024 for $462,570

Next Steps

  • Yes, I want to proceed with this opportunity
  • Meet realtor and sign conditional offer
  • Confirm your financing
  • Review inspection report
  • Review contracts
  • Go firm on the deal
  • Tenant-buyer’s $25,000 down will be used as the deposit on the property with accepted offer
Rachel and Neil Oliver
Rachel and Neil OliverCo-Founders, Managing Partners
Need a Mortgage Partner for Your Next RTO?
If you’re craving cashflow but have only cash to invest, let’s explore a Joint Venture.
Contact rachel@rethinkrentals.com

Contact me for more information or if you have any questions: rachel@rethinkrentals.com